MasterBrand (NYSE:MBC) Shares Gap Up – Should You Buy?

Shares of MasterBrand, Inc. (NYSE:MBC) gapped up prior to trading on Tuesday . The stock had previously closed at $13.39, but opened at $13.94. MasterBrand shares last traded at $14.00, with a volume of 79,173 shares changing hands.

Analyst Ratings Changes

Separately, Loop Capital dropped their target price on shares of MasterBrand from $21.00 to $19.00 and set a “buy” rating for the company in a research report on Wednesday, February 19th.

MasterBrand Trading Up 3.5 %

The business’s fifty day simple moving average is $15.64 and its 200 day simple moving average is $16.46. The company has a current ratio of 1.65, a quick ratio of 1.02 and a debt-to-equity ratio of 0.78. The stock has a market cap of $1.77 billion, a P/E ratio of 14.33 and a beta of 1.77.

MasterBrand (NYSE:MBC) last issued its quarterly earnings data on Tuesday, February 18th. The company reported $0.21 EPS for the quarter, missing analysts’ consensus estimates of $0.38 by ($0.17). MasterBrand had a return on equity of 13.89% and a net margin of 4.66%. The company had revenue of $667.70 million for the quarter, compared to the consensus estimate of $722.85 million.

MasterBrand declared that its Board of Directors has initiated a stock repurchase plan on Monday, March 17th that allows the company to repurchase $50.00 million in outstanding shares. This repurchase authorization allows the company to buy up to 2.9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Insider Activity

In other MasterBrand news, Director Juliana L. Chugg bought 6,989 shares of MasterBrand stock in a transaction dated Monday, February 24th. The shares were bought at an average price of $14.17 per share, with a total value of $99,034.13. Following the purchase, the director now owns 33,424 shares of the company’s stock, valued at $473,618.08. This trade represents a 26.44 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Robert Crisci bought 20,000 shares of MasterBrand stock in a transaction dated Friday, February 28th. The stock was acquired at an average cost of $14.08 per share, for a total transaction of $281,600.00. Following the purchase, the director now directly owns 66,435 shares in the company, valued at approximately $935,404.80. The trade was a 43.07 % increase in their position. The disclosure for this purchase can be found here. Insiders own 1.38% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Boston Partners lifted its stake in MasterBrand by 82.2% in the fourth quarter. Boston Partners now owns 5,237,123 shares of the company’s stock valued at $76,558,000 after buying an additional 2,363,308 shares in the last quarter. Gates Capital Management Inc. lifted its position in shares of MasterBrand by 7.5% in the fourth quarter. Gates Capital Management Inc. now owns 9,489,578 shares of the company’s stock worth $138,643,000 after purchasing an additional 658,807 shares in the last quarter. Polar Capital Holdings Plc bought a new stake in MasterBrand during the fourth quarter worth $8,373,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in MasterBrand by 58.9% during the third quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,425,966 shares of the company’s stock worth $26,437,000 after acquiring an additional 528,537 shares in the last quarter. Finally, Thrivent Financial for Lutherans raised its position in MasterBrand by 11.8% during the third quarter. Thrivent Financial for Lutherans now owns 4,926,048 shares of the company’s stock worth $91,329,000 after acquiring an additional 518,443 shares in the last quarter. Institutional investors own 87.32% of the company’s stock.

About MasterBrand

MasterBrand, Inc engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders.